I was watching an analyst last week when he said where the market share fight for Beer is 2-3%.
A fall of 28% is lethal.
I think it's considerably more. Wonder if they are going to continue pushing that number in a couple of days when they have to release quarterly figures. I'm sure they'll do everything they can to hide the decline, but you can't really prop up a brand solely with illegals which is pretty much what we're seeing.
“A fall of 28% is lethal.”
AB is in no danger of going out of business.
BL has taken a beating no doubt, and likely will never recover from this.. however AB is not 1 single beer. Yes, this will cause them pain, but they aren’t going away.
$60 Billion in worldwide sales across all brands is not going away because 1 of those brand (big in the US as it may be) is taking a beating.
Bud Light was selling about 25,000,000 barrels of beer a year prior to this. If it has dropped 30% that means they are still selling nearly 17,000,000 barrels of beer a year.. that’s not chump change. It does mean they are going to have to resize their staff and facilities and operations, but this isn’t AB lost 1/3 of its revenue, it lost a 1/3 of its revenue on 1 brand, even though its their biggest brand in the US.
Don’t have exact numbers, but best I can find is even now they are selling about $70,000,000 dollars worth of BL every week. That’s about 3.6 BILLION a year in revenues... so if that’s off 30%, that means AB INBev about 1.2 ish Billion in revenue over this... certainly not chump change, but out of 60 Billion in total revenue, it represents a revenue decline of less than 1/2 a percent overall to the parent organization.
I agree that BL as a brand will likely never recover its #1 status over this fiasco, but its not going away and ABINBEV is certainly not going out of business over it.